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Humana Inc. (HUM)

Humana stock forecast: buy or sell

Close on Oct 23rd, 2020
$444.31 +0.71%
3 months performance
14.10%
Published: October 23rd, 2020 - 5.03pm EDT

Humana stock outlook

  • Humana just moved a 0.71% after making new all-time highs today
  • Humana gained a 1.81% in 4 consecutive sessions in negative
  • Humana Inc., together with its subsidiaries, operates as a health and well-being company in the United States. It operates through Retail, Group and Specialty, and Healthcare Services segments.

Important note:
The comments written in this post are personal and not recommendations for you to buy or sell shares. The author of this document does not have an understanding of the specific circumstances of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are published for informational reasons only

Humana stock charts

Should I buy Humana stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $HUM stock a buy?

In the current situation of Humana there is not any eligible buy setup. This doesn't mean we expect a selloff for $HUM in the next few days, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

Should I sell Humana stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies help us to avoid rash decisions based on our sentiments or the buzz that surrounds the market. When selling, as well as buying, our setups are very simple to follow but are only applicable for selling stocks you already own, not for selling short $HUM stock

As a golden rule, you must never hold a trading operation that generates losses greater than those expected by the time of purchase. When to sell shares must always be determined by the stop-loss (automatic or manual)

Is it time to sell Humana stock?

In the current situation of Humana there is not any eligible sell setup, so Humana stock holders with operations in profit can keep their positions

Analysts' recommendations to buy or sell Humana stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 3 analyst ratings were published for Humana

Humana ratings

Brokerage firmRating
Oct 1st, 2020
Piper Sandler Buy
Oct 1st, 2020
Sanford C. Bernstein
Oct 13th, 2020
Truist Neutral

Technical analysis

$HUM at new Highs

Today, Humana marked new all-time highs (ATH) again at $449.43

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show market momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

HUM SMAs chart

Supports and resistances

Traders use support and resistance levels as a way to find price points on a chart that tend to behave as barriers, containing the price of a stock to move in certain direction. A support level is a level where the price tends to stop as it falls. Price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down this level, it is likely to continue falling until meeting another support level. On the other hand, a resistance level is where the price may find resistance as it rises. In the same way, this means that the price is more likely to "bounce off" at this level, and if it finally breaks this level, the price will climb easily until it hits the next resistance

Price is at all-time highs and there are not upper resistance levels.

The current support levels are:

  • S1: $430.45 (-3.12% below)
  • S2: $424.80 (-4.39% below)
  • S3: $411.37 (-7.41% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-established technical strategy introduced by John Bollinger. By essence, the Bollinger Bands are lines that flow around a moving average, varying the distance from the bottom to the top depending on market volatility. They are usually plotted by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    The price is moving very close to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a bearish indicator, as price can trade in these levels for many days and weeks

    HUM RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to map the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by investors

    The Relative Strength Indicator (RSI) has been between the the levels of 30 and 70 for several weeks, and therefore, without this indicator really serving to help us make any decisions.

    HUM RSI chart

    Earnings and financials

    In early August, Humana Inc. ($HUM) reported adjusted EPS for fiscal second-quarter that highly enhanced Wall St. expectations. Quarterly EPS was $12.56 per share compared to the forecasted $10.27. This quarterly report means an earnings surprise of 22.3%.

    Compared to the same quarter one year ago, EPS was $6.05, so current EPS means a improvement of 107.6%.

    Humana ($HUM) will host the Q3 earnings call on Tuesday next week. Wall Street predicts an earnings per-share of $2.79, compared to Q2 that made $12.56.

    HUM revenues and profits chart